Canara Bank net profit rises 10.5% to Rs 3,905 crore

Mumbai: State-run Canara Bank has reported a 10.5 percent on-year rise in net profit for the June quarter at Rs 3,905.3 crore on improved asset quality with lower bad loans and fresh slippages.

The Bengaluru-based lender said Thursday its gross bad loans or NPAs declined to 4.14 percent in the reporting quarter as against 5.15 percent in the year-ago period and net NPAs also declined to 1.24 percent from 1.57 percent.

In absolute terms, gross NPAs stood at Rs 40,356.38 crore compared to Rs 45,727.37 crore and net NPAs stood at Rs 11,701.77 crore compared to Rs 13,461.43 crore in the year-ago period. This had the bank’s provision coverage ratio improving by 118 bps to 89.22.

In the reporting period, fresh slippages of the bank declined to Rs 3,015 crore from Rs 3,188 crore in the year-ago period.

Total domestic deposit rose 11.47 percent to Rs 12.31 trillion from Rs 11.05 trillion of which the low cost Casa deposits grew 4.66 percent to Rs 3.81 trillion. Of the total, savings account stood at Rs 3.32 trillion, which was up 3.62 percent and term deposits grew 14.82 percent to Rs 8.50 trillion. Of this, retail term deposit stood at Rs 5.15 trillion.